Shares of DBS Group Holdings and Oversea-Chinese Banking Corporation (OCBC) surged to unprecedented levels on January 6.
OCBC's stock price broke through the $20 barrier for the first time ever, commencing trading at $20.04, while DBS shares reached a fresh peak of $57.48 as of 10:14 am.
DBS shares have demonstrated a consistent upward trajectory since the COVID-19 period, with the exception of a dip in April 2025 following the announcement of Liberation Day tariffs.
Conversely, OCBC's share price has been achieving new record highs since November 2025, propelled by its announcement of a stable third-quarter net profit of $1.98 billion, driven by increased non-interest income and reduced allowances.
However, for the nine-month period concluding on September 30, 2025, the group's net profit experienced a 4% year-on-year decline, settling at $5.68 billion.
The bank's most recent stock split, a two-for-one action, occurred in August 2005, when its shares were trading at approximately $13.
In its official statement released on February 22, 2005, the bank indicated that the split was intended to "enhance the affordability of investing in each board lot."
"Given that OCBC shares are currently trading above $13, a single board lot of 1,000 shares may constitute too significant an investment for numerous retail investors," remarked then-CEO David Conner.
"By reducing the absolute price per share through this initiative, we aim to make this investment opportunity accessible to a broader base of investors," he further elaborated. "We are confident that a wider investor base and the potential for improved liquidity over time will prove advantageous for both current and prospective shareholders of OCBC."
Among the analysts contributing to Bloomberg, Goldman Sachs's Melissa Kuang has set the most optimistic target price for OCBC at $21.20, while JP Morgan's Harsh Modi projects the highest target for DBS at $70. Kuang recommends a "buy" for OCBC, whereas Modi advises an "overweight" position on DBS.
In contrast, Autonomous Research's Ivan Ng has assigned an "underperform" rating to OCBC with a target price of $17, and Macquarie's Jayden Vantarakis similarly recommends "underperform" for DBS, setting a target of $46.
The question arises: will United Overseas Bank (UOB) approach its all-time high of $39.20?
UOB's shares, which faced pressure after the bank declared a pre-emptive additional general provision of $615 million during its third-quarter results, have also been on a steady ascent.
The bank's CFO, Leong Yung Chee, clarified that the provisions were primarily allocated for loans in Greater China and the US. PhillipCapital's Paul Chew speculated that the significant provision was linked to the disposal of several office assets in New York and Hong Kong, which served as collateral, at prices roughly 10% below their internal valuations.
Subsequent to the bank's third-quarter results, Carmen Lee of OCBC Investment Research stood out as the sole analyst maintaining a positive outlook, suggesting that any price dip at that time presented an accumulation opportunity for investors.
In her analysis, Lee highlighted that UOB's core earnings remained stable, with wealth management and credit card income showing growth for the first nine months of the fiscal year 2025. "Although the global outlook remains mixed, risk assets have performed strongly worldwide this year, resulting in enhanced investment and fee income," she noted in her report.
That being said, considering the wider macroeconomic environment, including the recent military action in Venezuela, foreign investors might need to re-evaluate their required returns on equity investments. Should the outlook for oil production point towards increased supply, this could alleviate inflationary pressures, potentially leading to lower policy interest rates and a consequent decrease in risk-free rates.
The interplay between interest rates and equity markets is complex, as interest rates affect companies through various channels. Fundamentally, however, lower interest rates typically depress risk-free rates. Consequently, the weighted average cost of capital (WACC) would likely decrease, thereby elevating equity prices. The underlying logic is that a lower WACC reduces the discount rate applied to future cash flows, enhancing the attractiveness of a company's investment returns. Thus, the current rise in equities reflects market anticipation of declining future inflation.
As of 2:50 pm, shares of DBS and OCBC were trading at $57.86 and $20.19 respectively, while UOB shares were trading at $36.08.